Although many analysts earlier said they expected second quarter earnings for fund companies to be strong because declining stock markets would not catch up to their asset bases, and therefore their fees, for a few months yet, that is no longer the case.

A number of analysts have now scaled back their estimates for the quarter, MarketWatch reports. Companies they do favor, however, are those with a broad array of products, international reach and strong balance sheets.

"We expect investors in money-management stocks will remain on the defensive throughout this earnings season," CIBC World Markets analysts concurred.

Guy Moszkowski, the famed Merrill Lynch analyst, thinks estimates will go down even further. "Expectations are much lower this quarter, after first-quarter disappointments from Legg Mason, Janus and others, so even so-so earnings may be greeted with relief," he said.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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